Enlarged City School District of Middletown Presents $283 Million Budget

MIDDLETOWN, N.Y.—The Middletown Common Council was presented with the proposed 2026–2027 Enlarged City School District of Middletown budget on May 5, which showed a 1.99 percent increase in the tax levy and falling state financial support.

Amy Creeden, school district superintendent, gave a rundown of the $283,735,894 budget and changes that are taking place in the school district. The council and mayor showed support for the budget and interest in helping the district.

The 2026–2027 budget increased by 2.65 percent from the previous year’s budget of $276,417,004, fueled by a general rise in expenses. Administrative expenses increased by $742,301, program expenses rose by $5.1 million, and $1.4 million was added to capital expenses.

Nearly three-quarters of the school district’s revenue comes from state aid, and about one-quarter comes from property taxes. The 2026–2027 school year’s levy will be $76,069,505, a 1.99 percent increase year over year. The tax increase for the 2025–2026 school year was also 1.99 percent; it was 1 percent for 2024–2025 school year.

Creeden said the maximum tax increase allowed was 4.87 percent, and that the tax increase was lower due to mandates from the board of education and previous fiscal actions by the district.

The district was expecting a 2 percent increase in Foundation Aid from the state, but only 1 percent was approved. Foundation Aid is a formula used by the state to distribute aid to public schools. It prioritizes schools in high-poverty areas and those in which there are more English learners or disabled students.

Creeden said that because the Middletown school district has stable enrollment, less money is given than if there were declining enrollment. She said the district had been expecting that the revenue would be stable, and that this drop indicates that the next few years will be rough for state funding.

The superintendent said the district is planning to put away money for lean times, and that the drop in state revenue this year will not significantly affect programs or cause major layoffs.

Programs make up 72.8 percent of the budget, which includes $98.5 million for regular instruction, $49.1 million for students with disabilities, $41.8 million for benefits, $14.1 million for transportation, and $2 million for athletics.

The $43,815,358 in capital expenses accounts for 15.4 percent of the budget. The money mostly goes toward operations and maintenance ($21.7 million), payment on debt principal and interest ($14.3 million), and benefits ($6.6 million).

The smallest percentage is the administrative budget, taking up 11.8 percent and a total of $33.4 million. The highest receiving categories are curriculum ($13 million), finance and central services ($7.8 million), and benefits ($7.2 million).

The Enlarged City School District of Middletown has about 7,400 students and 660 teachers, as of the 2024–2025 school year. The district encompasses seven schools in the Middletown city area, including four elementary schools, two middle schools, and the Middletown High School.